The comparative balance sheets for 2018 and 2017 and the statement of income for
ID: 2535030 • Letter: T
Question
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux’s accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) 2018 2017 Assets Cash 63 35 Accounts receivable 59 77 Less: Allowance for uncollectible accounts -4 -3 Dividends receivable 2 1 Inventory 85 65 Long-term investment 45 25 Land 136 71 Buildings and equipment 210 280 Less: Accumulated depreciation -40 -80 ) 556 471 Liabilities Accounts payable 28 50 Salaries payable 2 7 Interest payable 4 3 Income tax payable 22 23 Notes payable 65 0 Bonds payable 125 85 Less: Discount on bonds -17 -33 Shareholders' Equity Common stock 225 215 Paid-in capital—excess of par 37 35 Retained earnings 88 86 Less: Treasury stock -23 0 556 471 DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s) Revenues Sales revenue 333 Dividend revenue 6 $339 Expenses Cost of goods sold 135 Salaries expense 40 Depreciation expense 35 Bad debt expense 1 Interest expense 23 Loss on sale of building 4 Income tax expense 32 270 Net income $69.00 Additional information from the accounting records: A. A building that originally cost $100,000, and which was three-fourths depreciated, was sold for $21,000. B. The common stock of Byrd Corporation was purchased for $20,000 as a long-term investment. C. Property was acquired by issuing a 14%, seven-year, $65,000 note payable to the seller. D. New equipment was purchased for $30,000 cash. E. On January 1, 2018, bonds were sold at their $40,000 face value. F. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $12 per share at that time. G. Cash dividends of $55,000 were paid to shareholders. H. On November 46,000 shares of common stock were repurchased as treasury stock at a cost of $23,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)) DUX COMPANY STATEMENT OF CASH FLOWS For Year Ended December 31, 2018 ($ IN 000s) Adjustment for noncash effects: Changes in operating assets and liabilities: Cash balance, January 1 Noncash investing and financing activities: The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux’s accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) 2018 2017 Assets Cash 63 35 Accounts receivable 59 77 Less: Allowance for uncollectible accounts -4 -3 Dividends receivable 2 1 Inventory 85 65 Long-term investment 45 25 Land 136 71 Buildings and equipment 210 280 Less: Accumulated depreciation -40 -80 ) 556 471 Liabilities Accounts payable 28 50 Salaries payable 2 7 Interest payable 4 3 Income tax payable 22 23 Notes payable 65 0 Bonds payable 125 85 Less: Discount on bonds -17 -33 Shareholders' Equity Common stock 225 215 Paid-in capital—excess of par 37 35 Retained earnings 88 86 Less: Treasury stock -23 0 556 471 DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s) Revenues Sales revenue 333 Dividend revenue 6 $339 Expenses Cost of goods sold 135 Salaries expense 40 Depreciation expense 35 Bad debt expense 1 Interest expense 23 Loss on sale of building 4 Income tax expense 32 270 Net income $69.00 Additional information from the accounting records: A. A building that originally cost $100,000, and which was three-fourths depreciated, was sold for $21,000. B. The common stock of Byrd Corporation was purchased for $20,000 as a long-term investment. C. Property was acquired by issuing a 14%, seven-year, $65,000 note payable to the seller. D. New equipment was purchased for $30,000 cash. E. On January 1, 2018, bonds were sold at their $40,000 face value. F. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $12 per share at that time. G. Cash dividends of $55,000 were paid to shareholders. H. On November 46,000 shares of common stock were repurchased as treasury stock at a cost of $23,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)) DUX COMPANY STATEMENT OF CASH FLOWS For Year Ended December 31, 2018 ($ IN 000s) Adjustment for noncash effects: Changes in operating assets and liabilities: Cash balance, January 1 Noncash investing and financing activities:Explanation / Answer
DUX COMPANY Statement of Cash Flows For the Year Ended Dec 31 2018 Cash Flows from Operating Activities Amount Net Income 69 Adjustment to reconcile net income with Operating Activities:- Depreciation 35 Loss on sale of Building 4 Allowance for uncollectible accounts 1 Interest expense 23 Dividend received -6 Changes in current operating assests and liabilities Decrease in accounts receivable 18 Increase in Dividend Receivable -1 Increase in Inventories -20 Decrease in accounts payable -22 Decrease in Salary payable -5 Increase in Interest Payable 1 Decrease in Income tax payable -1 Net cash Flow from operating Activities 96 Cash Flows from Investing Activities Cash paid from purchase of Equipement -30 Cash received from Sale of Building 21 Dividend received 6 Cash paid for Investment Purchased -20 Net cash Flow from investing Activities -23 Cash Flows from financing Activities Cash Received from Sale of Common Stock 12 Purchase of Treasuary stock -23 Dividend paid -51 Interest Expense -23 Cash received from issue of Bond 40 Net cash Flow from financing Activities -45 Increase in Cash 28 cash at beginning of year 35 cash at end of year 63 Noncash investing and financing activities: Cash paid from purchase of land -65 Cash received issue from Note 65